The Colony Beach & Tennis Resort will be closing as a resort operation, and its approximately $200,000 in assets will be liquidated after U.S. Bankruptcy Judge K. Rodney May ruled Monday to convert the Colony’s Chapter 11 bankruptcy reorganization to a Chapter 7 liquidation.
May also agreed to give complete control of the units at the historic resort to the 232 unit owners.
May did not take the advice of U.S. bankruptcy trustee William Maloney, who suggested in his second report that the bankruptcy case should be dismissed. Maloney argued for dismissal because there is less than $200,000 in estate assets and more than $1 million in expense claims against the estate.
Maloney also advised Judge May to give the unit owners possession of their units for the foreseeable future, while keeping the hotel partnership in place for the time being between the owners and Colony owner and Chairman Dr. Murray “Murf” Klauber.
Miami attorney Jordi Guso, who represents Maloney, told the judge a settlement conference went nowhere last month, when members of the Colony Association Board of Directors refused to work with Klauber or Colony Lender LLC, which owns Klauber’s overdue bank loans.
Association attorney Jeffery Warren denied that his client did not act in good faith while attempting to negotiate a settlement.
For more information, including the fate of the 18-acre resort property, pick up a copy of Thursday’s Aug. 12 Longboat Observer.
Contact Kurt Schultheis at email@example.com.
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- May the Colony rest in peace. And may the unit owners move on to consummate a sale that would enhance all owners' well being and resurrect a new resort on a most beautiful piece of Gulf front property that would eclipse the Colony in its heyday.
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